If you’re renovating for profit, getting the right insurance cover is vital to protect your investment if disaster strikes. Let’s face it, claim time is not the time to find out your insurance falls short of the mark.
When you are renovating the key risks to insure are:
- Damage to your property; and
- Public liability – which protects against legal claims made by third parties for personal injury and property damage.
Despite what many people think, a standard home insurance policy is unlikely to cover these key risks and here’s why:
- Home insurance policies restrict their cover to damage relating to the existing building while in the course of being renovated. Each policy is different, however these restrictions often include:
- Damage caused by water entering the home through openings in unfinished parts of the home
- Storm, flood, malicious damage or vandalism to unfinished parts of the home or new work
- Theft of building materials or fixtures before they are installed or fixed in place
- Vacating the building – If the property is vacant for a set period of time the Home & Contents policy may be void. 60 days vacancy is a common limit.
- Standard home insurance policies limit the Public Liability cover when renovation work is undertaken – limits on some policies are as low as $20,000!
- Many insurance companies will not provide cover under a standard home insurance policy for a short period of time when awaiting sale after renovation.
- And, if you are renovating for profit, it’s likely to be considered a business venture by the insurance company. And while a home insurance policy will normally provide cover for public liability, it will specifically exclude public liability claims relating to the operation of a business.
What if I decide to retain the property and rent it out?
In the event the property is retained for rental, a landlord’s insurance policy should suit you. There are many policies available and they typically include the following covers:
- Building and contents
- Loss of rent
- Rent default
The Renovating for Profit Solution
Amicus Insurance Services has negotiated flexible insurance solutions specific for the Renovating for Profit graduates.
The basic areas to cover are as follows:
The solution is a Construction and Liability policy which can be tailored to suit your individual needs and cover all renovation projects that you carry out for a 12 month period.
Additionally we cover the existing structure on separate home policy which remains in place for as long as you hold the property. We can cover homes that have been unoccupied for a period of time which can be difficult to cover with many insurers.
There are other insurance covers that may be applicable to your particular building and construction venture. Contact us today to discuss your specific requirements.